If one dollar is initially equal in value to one euro and demand for euros increases, then each dollar will be worth
a. more than one euro, and European imports will be cheaper in the United States
b. less than one euro, and European imports will be more expensive in the United States
c. more than one euro, and European imports will be more expensive in the United States
d. less than one euro, and European imports will be cheaper in the United States
e. the same as the euro, and there will be no change in the values of imports or exports
B
You might also like to view...
Refer to Table 3-6. The table contains information about the sorghum market. Use the table to answer the following questions
a. What are the equilibrium price and quantity of sorghum? b. Suppose the prevailing price is $6 per bushel. Is there a shortage or a surplus in the market? c. What is the quantity of the shortage or surplus? d. How many bushels will be sold if the market price is $6 per bushel? e. If the market price is $6 per bushel, what must happen to restore equilibrium in the market? f. At what price will suppliers be able to sell 36,000 bushels of sorghum? g. Suppose the market price is $14 per bushel. Is there a shortage or a surplus in the market? h. What is the quantity of the shortage or surplus? i. How many bushels will be sold if the market price is $14 per bushel? j. If the market price is $14 per bushel, what must happen to restore equilibrium in the market?
What is the meaning of "a defective telescopic faculty," as described by A.C. Pigou?
a. Persons are unable to plan rationally for consumption. b. Persons zero in on something and cannot consider alternatives. c. Persons seek long-term goals and ignore present problems. d. Persons are unable to give adequate weight to the future.
People have a portfolio demand for money in part because:
A. money is needed to pay brokerage commissions. B. there is no cost to holding money which gives it a relatively high return. C. money is part of a well-diversified financial portfolio. D. the return on money is often higher than other financial assets.
Define allocative efficiency. Explain the significance of this concept in economics?
What will be an ideal response?